Chapter 14: The Hardships of Starting a Business

On North Hollywood's Laurel Canyon Boulevard, Judith started her day busy as usual. She submitted a loan approval request and made calls to clients with loans nearing their due dates. Despite the perceived stability of her banking job, it was exhausting, keeping her busy all day long.

The irony of handling large sums of money daily while being personally strapped for cash was not lost on her.

After making two collection calls, Judith noticed Seagull Entertainment and Michael Davenport's names, frowning slightly. Under normal circumstances, there was no need to demand repayment before the loan was due, but special conditions allowed the bank to issue reminders or even call in the loan early.

Judith doubted Seagull Entertainment and Michael Davenport's ability to repay. She figured it wouldn't be long before both were bankrupt. Fortunately, the original loan was a secured loan, covering only 70% of the collateral value.

Both the property and Seagull Entertainment's film rights were quality assets. This loan was unlikely to become a bad debt.

Michael Davenport had mentioned coming in today to repay the loan. Seagull Entertainment hadn't produced any films recently, and most employees had left. How could Michael afford to repay? Was he planning to let the bank seize the film rights and the apartment?

Five minutes later, Judith was surprised to see Michael. The last time she saw him, he had looked disheveled and dejected, like a homeless person. Now, his hair was neatly styled, his eyes were bright, and he wore an Armani suit that complemented his impressive physique. The clear glasses added an air of maturity.

Michael Davenport looked like a completely different person—a handsome one at that.

Judith found herself captivated by Michael, almost ignoring the middle-aged woman accompanying him.

"Hello, Ms. Judith," Michael greeted politely.

"Oh... hello, Mr. Davenport," Judith replied, snapping back to reality.

Michael said casually, "I'm here to settle the repayment for Seagull Entertainment and my personal loan."

Judith was even more surprised. "You're repaying early?"

Without further ado, Michael pulled out a chair and sat down. "I will pay off both loans and the accrued interest in full today."

Judith was stunned. This was completely different from the situation she had imagined.

"Is there a problem?" Michael asked formally. "I remember the contract allows for early repayment."

Judith quickly regained her composure. "Yes, it does allow for early repayment." She couldn't contain her curiosity. "Did you manage to raise the funds?"

Michael shrugged slightly. "Of course. How else would I repay?"

Judith steadied herself, discarding her surprise. She probed, "Where did you get the money?"

Michael replied coolly, "Rest assured, the funds are entirely legal. The details are a commercial secret, and I'm not at liberty to disclose them." He looked at Mary. "Please handle the repayment with Ms. Judith."

After nearly an hour, Mary completed all the paperwork, and Michael prepared to leave.

He extended his right hand to Judith. "I hope I won't receive any more collection notices from you."

Judith gave a professional smile. "I hope so too."

Michael and Mary left the reception area but didn't leave the bank. They headed directly to the elevator.

"No issues?" Michael asked quietly.

Mary responded immediately, "No issues."

Michael pressed the elevator button. "We're going to see the credit manager."

After a busy morning, Judith received news from a colleague. Seagull Entertainment and Michael Davenport had just repaid their loan and then applied for a new $3 million mortgage loan.

"How is that possible?" Judith was incredulous.

Her colleague said, "Why not? Michael Davenport repaid the loan early, proving his good credit and repayment ability. A new loan is perfectly within protocol."

Judith shook her head. "That's not what I mean. He just repaid today."

Her colleague leaned in and lowered her voice. "I asked the manager's assistant. Michael Davenport showed the manager proof of millions of dollars in funds from Bank of America. With the continued use of the film rights and property as collateral, the manager approved the loan. It's just a matter of processing now."

Judith was dumbfounded. "Millions of dollars?"

"Yes," her colleague sighed, lightly patting Judith's shoulder. "You lost a major client. Otherwise, the commission on this loan…"

Judith bit her lip. Seagull Entertainment had always been her client.

"Did I misjudge Michael Davenport and Seagull Entertainment?" she murmured.

After leaving the bank, Michael went to Merrill Lynch's Los Angeles branch, securing a highly reputable stockbroker and signing a brokerage agreement.

He didn't need advice, just someone to buy and sell as instructed.

Brokerage commissions are flexible—the higher the investment and the larger the trading volume, the lower the commission rate.

Michael's primary targets were Yahoo and Cisco.

Before investing, he had done detailed research. Yahoo's February opening price was $64, peaking at $74 that month.

Cisco's stock, after a reissue last year, was priced at $5 and had risen to nearly $14.

Undoubtedly, these were both very popular stocks, with a stream of favorable news.

Michael wasn't a professional stock trader in his previous life; he only remembered some basics. Cisco had once held the title of the world's most valuable company, and Yahoo had been equally impressive, though both eventually declined.

When would they collapse? He knew it was after 2000, but exactly how long they would hold out, he wasn't sure.

This meant he couldn't micromanage each stock. He would have the stockbroker gradually acquire the stocks and sell them before the market became unstable in 2000.

After 2000, the risk factor would multiply. With many big players watching, even the slightest market movement could cause significant changes.

Michael planned to invest the $600,000 raised in Abu Dhabi and the $300,000 from the bank loan into the stock market, using both company and personal accounts.

He would keep $100,000 as an emergency fund.

Unfortunately, given his current status and conditions, he couldn't set up a fund yet, which would have made investing easier.

With a phased purchase order, the $900,000 would enter the market gradually, causing minimal disruption.

"Mr. Davenport,"

Before leaving Merrill Lynch, the stockbroker shook hands with Michael. "Your needs are our pursuit."

Michael politely replied, "Thank you, Scott. I hope this will be a pleasant collaboration."

Scott, the stockbroker, gripped Michael's hand firmly. "I just transferred from Pennsylvania to Los Angeles. Meeting a client like you and being able to serve you is my honor."

Michael nodded, saying only, "Pleasant cooperation."

Undeniably, money could change many things in this world. At Merrill Lynch, just mentioning his investment amount had earned him top-notch service.

Scott smiled, "Pleasant cooperation."

Such clients were rare.

After leaving Merrill Lynch, Michael asked Mary to return to the company while he went to the car market and bought a new Cadillac. Back at the office, he reviewed the work log to confirm the next steps.

He needed to quickly hire a director for "The Purge." Once the director was on board, they could assemble the production team and cast the main actors.

The script needed revisions. The first draft had been impressive but was primarily aimed at securing Arab investment and wasn't entirely suitable for filming.

Michael could personally revise the script and later incorporate the director's suggestions.

Oh, and there was the blog writing plan, which could be postponed for now.

Then there was the matter of networking. With the primary business being films, connections in Hollywood were crucial. Although Old Davenport was conservative, he managed his network well and was somewhat known in the industry.

Young Davenport, however, had been reckless, believing that talent and ability could overcome all obstacles, discarding most of Old Davenport's connections upon taking over Seagull Entertainment.

These connections needed to be rebuilt and expanded.

How to expand one's network in Hollywood? The basic method was to frequently attend banquets and parties.

Many of these events were filled with investors, producers, directors, actors, and agents. Initial project intentions often formed during social interactions.

Michael instructed Mary to find suitable industry parties.

After organizing a clear plan, Michael worked until almost 9 PM, then spent another three hours revising "The Purge" script back at his apartment.

Starting a business was tough, with countless challenges.

Even as someone who had lived another life, with the advantage of foresight, hard work and dedication were essential.